ARCHBOLD, Ohio, Oct. 22, 2026 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2026 third quarter and year-to-date ended September 30, 2026, on a consolidated basis.
2026 Third-Quarter Financial and Operating Highlights
(at September 30, 2026, and on a year-over-year basis unless noted)
- 94 consecutive quarters of profitability
- Net income increased 30.3% to $11.5 million, or $0.84 per basic and diluted share
- Strong profitability drives ROAA to 1.29%, compared to 1.05%
- Net charge-offs to average loans of 0.00%
- Tier 1 leverage ratio was 9.14%
- Cost of interest-bearing liabilities improved to 2.59%, from 2.83%
- Net interest margin increased by 17 basis points to 3.57%
- Efficiency ratio improved to 58.09%, compared to 63.11%
- Third quarter regular dividend per share increased 5.5% to $0.96 annualized
- Company declared an additional $0.01 per share special dividend, bringing total third-quarter payment to $0.250 per share
Lars B. Eller, President and Chief Executive Officer, stated, “2026 is shaping up to be a historic year of profitability and growth with year-to-date earnings per share increasing 39.8% to $2.39. Throughout the 2026 nine-month period, our team has worked hard to expand our net interest margin, control operating expenses, grow our balance sheet, and maintain excellent asset quality. We are encouraged by the progress we have made across these key priorities and believe we are well positioned to sustain our positive momentum through the remainder of 2026 and into 2027.”
Income Statement
Net income for the quarter ended September 30, 2026, was $11.5 million, compared to $8.9 million for the same period last year. Net income per basic and diluted share for the 2026 third quarter was $0.84, compared to $0.64 for the same period last year. Net income for the nine months ended September 30, 2026, was $32.9 million, compared to $23.5 million for the same period last year. Net income per basic and diluted share for the 2026 nine months was $2.39, compared to $1.71 for the same period last year.
Mr. Eller continued: “We believe F&M is well positioned to navigate a higher interest rate environment and capitalize on opportunities to further expand our net interest margin. With loan repricing opportunities extending through 2028, we believe we have a favorable backdrop to support interest income growth in the coming quarters and years. Combined with our disciplined approach to deposit pricing and funding costs, we remain optimistic about our ability to maintain the significant improvement in net interest margin achieved over the past year.”
Deposits
At September 30, 2026, total deposits were $2.96 billion, an increase of 7.7%, or $210.6 million from September 30, 2025. For the three months ended September 30, 2026, F&M’s cost of interest-bearing liabilities was 2.59%, compared to 2.83% in the same period last year.
Loan Portfolio and Asset Quality
Total loans, net at September 30, 2026, increased 3.0%, or by $79.0 million to $2.74 billion, compared to $2.66 billion at September 30, 2025. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and consumer real estate loans, partially offset by lower commercial real estate, consumer, and agricultural real estate loans.
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans continue to normalize on a year-over-year basis and were $6.2 million, or 0.23% of total loans at September 30, 2026, compared to $7.4 million, or 0.27% of total loans at June 30, 2026, and $5.2 million, or 0.19% of total loans at September 30, 2025.
F&M maintains a well-balanced, diverse, and high performing CRE portfolio. CRE loans represented 48.2% of the Company’s total loan portfolio at September 30, 2026. F&M’s CRE portfolio included the following categories at September 30, 2026 (*):
|
CRE Category |
Dollar Balance |
Percent of CRE Portfolio |
Percent of Total Loan Portfolio |
||||
| Multi-family | $ | 248,851 | 18.8% | 9.1% | |||
| Retail | 241,155 | 18.3% | 8.8% | ||||
| Industrial | 211,320 | 16.0% | 7.7% | ||||
| Hotels | 176,727 | 13.4% | 6.5% | ||||
| Office | 125,283 | 9.5% | 4.6% | ||||
| Gas Stations | 83,361 | 6.3% | 3.0% | ||||
| Food Service | 53,045 | 4.0% | 1.9% | ||||
| Development | 35,527 | 2.7% | 1.3% | ||||
| Auto Dealers | 26,163 | 2.0% | 1.0% | ||||
| Senior Living | 17,205 | 1.3% | 0.6% | ||||
| Other | 102,384 | 7.7% | 3.7% | ||||
| Total CRE | $ | 1,321,021 | 100.0% | 48.2% | |||
* Numbers have been rounded; totals may not foot due to rounding; and dollar amounts in thousands.
At September 30, 2026, the Company’s total allowance for credit losses to total loans was 1.08%, compared to 1.07% at September 30, 2025.
Mr. Eller concluded, “Our relationship-based banking model and local decision-making continue to differentiate F&M across our Ohio, Indiana, and Michigan markets. We maintain a healthy lending pipeline, reflecting continued opportunities to support businesses and consumers throughout our communities. Our local market knowledge and disciplined underwriting practices allow us to remain selective in pursuing new business while maintaining strong asset quality. We believe this balanced approach to profitable growth, combined with our continued focus on operational efficiency and shareholder returns, positions F&M to build upon our strong financial performance.”
Stockholders’ Equity and Dividends
Total stockholders’ equity increased 6.9% to $386.9 million, or $28.12 per share at September 30, 2026, from $361.8 million, or $26.31 per share at September 30, 2025. The Company had a Tier 1 leverage ratio of 9.14% at September 30, 2026, compared to 8.74% at September 30, 2025.
Tangible stockholders’ equity increased to $297.5 million at September 30, 2026, compared to $271.0 million at September 30, 2025. On a per share basis, tangible stockholders’ equity at September 30, 2026, was $21.62 per share, compared to $19.71 per share at September 30, 2025. Tangible stockholders’ equity and tangible book value per share are non-GAAP financial measures; see “Use of Non-GAAP Financial Measures.”
F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 32 consecutive years. For the nine months ended September 30, 2026, the Company declared cash dividends of $0.71 per share, representing a 6.0% increase over the same period last year. For the nine months ended September 30, 2026, the dividend payout ratio was 29.34% compared to 38.64% for the same period last year.
As part of F&M’s disciplined approach to capital management, the Company has continued to actively repurchase shares of F&M common stock. These repurchases are intended, in part, to help offset dilution associated with equity-based management compensation while supporting F&M’s broader objective of managing capital in a manner that enhances long-term shareholder value.
Mr. Eller concluded, “One of the most rewarding aspects of our continued financial success is the ability to share that success with our shareholders. Our 32nd consecutive annual dividend increase, and third quarter special dividend, are testaments to the strength of our franchise, the consistency of our financial performance, and our disciplined approach to capital management. We believe the combination of profitable growth, a strong balance sheet, and consistent capital returns positions F&M to create meaningful long-term value for our shareholders.”
About Farmers & Merchants Bancorp, Inc.
Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is a financial holding company headquartered in Archbold, Ohio, and the parent company of The Farmers & Merchants State Bank.
About Farmers & Merchants State Bank:
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking, and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben, and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Muncie, Indiana; and Perrysburg and Bryan, Ohio.
Use of Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures, including tangible stockholders’ equity and tangible book value per share. Management believes these measures facilitate period-to-period comparisons of the Company’s performance and provide useful supplemental information to investors; however, they should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Basis of Presentation
The financial information in this release is preliminary, based on management’s current expectations, and is subject to change pending completion of customary quarterly closing processes and review. Unless otherwise indicated, all figures are presented on a consolidated basis and comparisons are to the same period of the prior year. Averages may be annualized. Totals may not foot due to rounding.
Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” “project,” “target,” “goal,” “will,” “would,” and similar expressions. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, deposit flows and pricing, liquidity and access to wholesale funding, interest rate and asset-liability management, credit quality (including commercial real estate exposures), collateral values, inflation and macroeconomic conditions, changes in laws and regulations (including capital and liquidity requirements and the implementation of “Basel III Endgame”), FDIC assessments, stress testing and supervisory expectations, cybersecurity and third-party/vendor risks, competition and technological change, geopolitical events, severe weather and natural disasters, agricultural sector conditions, the accuracy of CECL estimates and other accounting judgments, capital and dividend restrictions, and other risks described in F&M’s filings with the SEC. F&M undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME | |||||||||||||||||||||||||||
| (Unaudited) (in thousands of dollars, except per share data) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
September 30, 2026 |
September 30, 2025 |
|||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||
| Loans, including fees | $ | 42,061 | $ | 40,839 | $ | 39,827 | $ | 40,999 | $ | 41,013 | $ | 122,727 | $ | 117,615 | |||||||||||||
| Debt securities: | |||||||||||||||||||||||||||
| U.S. Treasury and government agencies | 3,057 | 2,712 | 2,305 | 2,259 | 2,224 | 8,074 | 6,552 | ||||||||||||||||||||
| Municipalities and corporate bonds | 346 | 347 | 349 | 362 | 366 | 1,042 | 1,117 | ||||||||||||||||||||
| Dividends | 207 | 239 | 245 | 250 | 309 | 691 | 958 | ||||||||||||||||||||
| Federal funds sold and other | 1,321 | 1,510 | 572 | 696 | 572 | 3,403 | 2,736 | ||||||||||||||||||||
| Total interest income | 46,992 | 45,647 | 43,298 | 44,566 | 44,484 | 135,937 | 128,978 | ||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||
| Deposits | 14,758 | 14,432 | 13,249 | 14,318 | 15,060 | 42,439 | 43,861 | ||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 120 | 118 | 145 | 226 | 273 | 383 | 816 | ||||||||||||||||||||
| Borrowed funds | 1,694 | 1,894 | 2,176 | 1,966 | 1,966 | 5,764 | 6,927 | ||||||||||||||||||||
| Subordinated notes | 480 | 285 | 284 | 285 | 284 | 1,049 | 853 | ||||||||||||||||||||
| Total interest expense | 17,052 | 16,729 | 15,854 | 16,795 | 17,583 | 49,635 | 52,457 | ||||||||||||||||||||
| Net Interest Income – Before Provision for Credit Losses | 29,940 | 28,918 | 27,444 | 27,771 | 26,901 | 86,302 | 76,521 | ||||||||||||||||||||
| Provision for (Recovery of) Credit Losses – Loans | (104 | ) | 173 | 302 | 567 | 557 | 371 | 2,029 | |||||||||||||||||||
| Provision for (Recovery of) Credit Losses – Off Balance Sheet Exposures | 479 | 148 | 6 | (1 | ) | (272 | ) | 633 | (505 | ) | |||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 29,565 | 28,597 | 27,136 | 27,205 | 26,616 | 85,298 | 74,997 | ||||||||||||||||||||
| Noninterest Income | |||||||||||||||||||||||||||
| Customer service fees | 380 | 544 | 483 | 337 | 370 | 1,407 | 1,081 | ||||||||||||||||||||
| Other service charges and fees | 1,331 | 1,301 | 1,283 | 1,311 | 1,349 | 3,915 | 3,679 | ||||||||||||||||||||
| Interchange income | 1,339 | 1,347 | 1,513 | 1,275 | 1,273 | 4,199 | 3,953 | ||||||||||||||||||||
| Loan servicing income | 686 | 846 | 838 | 814 | 674 | 2,370 | 2,065 | ||||||||||||||||||||
| Net gain on sale of loans | 399 | 683 | 575 | 306 | 444 | 1,657 | 985 | ||||||||||||||||||||
| Increase in cash surrender value of bank owned life insurance | 731 | 681 | 655 | 640 | 247 | 2,067 | 730 | ||||||||||||||||||||
| Gain (loss) on sale of other assets owned | 1 | 30 | – | (2 | ) | – | 31 | (39 | ) | ||||||||||||||||||
| Loss on sale of available-for-sale securities | – | – | (347 | ) | – | – | (347 | ) | – | ||||||||||||||||||
| Total noninterest income | 4,867 | 5,432 | 5,000 | 4,681 | 4,357 | 15,299 | 12,454 | ||||||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||||||||
| Salaries and wages | 8,594 | 8,381 | 8,267 | 8,037 | 8,108 | 25,242 | 23,553 | ||||||||||||||||||||
| Employee benefits | 2,458 | 2,338 | 2,379 | 2,386 | 2,273 | 7,175 | 6,942 | ||||||||||||||||||||
| Net occupancy expense | 1,081 | 931 | 1,169 | 1,052 | 1,104 | 3,181 | 3,378 | ||||||||||||||||||||
| Furniture and equipment | 1,685 | 1,594 | 1,566 | 1,352 | 1,532 | 4,845 | 4,224 | ||||||||||||||||||||
| Data processing | 840 | 778 | 994 | 964 | 1,109 | 2,612 | 2,723 | ||||||||||||||||||||
| Franchise taxes | 394 | 395 | 400 | 397 | 397 | 1,189 | 1,191 | ||||||||||||||||||||
| ATM expense | 576 | 561 | 576 | 676 | 665 | 1,713 | 1,917 | ||||||||||||||||||||
| Advertising | 906 | 363 | 472 | 666 | 674 | 1,741 | 1,533 | ||||||||||||||||||||
| FDIC assessment | 413 | 389 | 396 | 377 | 428 | 1,198 | 1,341 | ||||||||||||||||||||
| Servicing rights amortization – net | 349 | 328 | 523 | 637 | 586 | 1,200 | 947 | ||||||||||||||||||||
| Loan expense | 530 | 578 | 309 | 292 | 362 | 1,417 | 918 | ||||||||||||||||||||
| Consulting fees | 312 | 325 | 254 | 182 | 242 | 891 | 1,481 | ||||||||||||||||||||
| Professional fees | 447 | 425 | 500 | 352 | 516 | 1,372 | 1,577 | ||||||||||||||||||||
| Intangible asset amortization | 305 | 304 | 305 | 446 | 445 | 914 | 1,334 | ||||||||||||||||||||
| Other general and administrative | 1,328 | 1,574 | 1,691 | 1,237 | 1,298 | 4,593 | 4,700 | ||||||||||||||||||||
| Total noninterest expense | 20,218 | 19,264 | 19,801 | 19,053 | 19,739 | 59,283 | 57,759 | ||||||||||||||||||||
| Income Before Income Taxes | 14,214 | 14,765 | 12,335 | 12,833 | 11,234 | 41,314 | 29,692 | ||||||||||||||||||||
| Income Taxes | 2,676 | 2,968 | 2,757 | 3,040 | 2,380 | 8,401 | 6,176 | ||||||||||||||||||||
| Net Income | 11,538 | 11,797 | 9,578 | 9,793 | 8,854 | 32,913 | 23,516 | ||||||||||||||||||||
| Other Comprehensive Income (Loss) (Net of Tax): | |||||||||||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | (5,915 | ) | (545 | ) | (2,420 | ) | 2,657 | 6,610 | (8,880 | ) | 14,223 | ||||||||||||||||
| Reclassification adjustment for realized loss on sale of available-for-sale securities | – | – | 347 | – | – | 347 | – | ||||||||||||||||||||
| Net unrealized gain (loss) on available-for-sale securities | (5,915 | ) | (545 | ) | (2,073 | ) | 2,657 | 6,610 | (8,533 | ) | 14,223 | ||||||||||||||||
| Tax expense (benefit) | (1,242 | ) | (115 | ) | (435 | ) | 558 | 1,388 | (1,792 | ) | 2,987 | ||||||||||||||||
| Other comprehensive income (loss) | (4,673 | ) | (430 | ) | (1,638 | ) | 2,099 | 5,222 | (6,741 | ) | 11,236 | ||||||||||||||||
| Comprehensive Income | $ | 6,865 | $ | 11,367 | $ | 7,940 | $ | 11,892 | $ | 14,076 | $ | 26,172 | $ | 34,752 | |||||||||||||
| Basic Earnings Per Share | $ | 0.84 | $ | 0.86 | $ | 0.70 | $ | 0.71 | $ | 0.64 | $ | 2.39 | $ | 1.71 | |||||||||||||
| Diluted Earnings Per Share | $ | 0.84 | $ | 0.86 | $ | 0.70 | $ | 0.71 | $ | 0.64 | $ | 2.39 | $ | 1.71 | |||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
| (Unaudited) (in thousands of dollars, except share data) | |||||||||||||||||||
| September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
|||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 205,125 | $ | 155,879 | $ | 172,847 | $ | 97,249 | $ | 116,448 | |||||||||
| Federal funds sold | 686 | 511 | 623 | 469 | 582 | ||||||||||||||
| Total cash and cash equivalents | 205,811 | 156,390 | 173,470 | 97,718 | 117,030 | ||||||||||||||
| Interest-bearing time deposits | 518 | 518 | 1,253 | 1,498 | 1,498 | ||||||||||||||
| Securities – available-for-sale | 455,977 | 441,254 | 429,623 | 422,072 | 422,773 | ||||||||||||||
| Other securities, at cost | 10,681 | 10,681 | 12,672 | 13,032 | 11,509 | ||||||||||||||
| Loans held for sale | 2,527 | 2,994 | 5,579 | 3,934 | 3,003 | ||||||||||||||
| Loans, net of allowance for credit losses | 2,709,358 | 2,677,072 | 2,654,135 | 2,685,990 | 2,632,668 | ||||||||||||||
| Premises and equipment | 29,590 | 30,334 | 31,534 | 31,864 | 32,321 | ||||||||||||||
| Goodwill | 86,358 | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||||
| Loan servicing rights | 5,034 | 5,085 | 4,972 | 5,175 | 5,537 | ||||||||||||||
| Other real estate owned | – | – | 319 | ||||||||||||||||
| Bank owned life insurance | 48,751 | 48,021 | 45,407 | 47,410 | 35,602 | ||||||||||||||
| Other assets | 44,450 | 43,411 | 40,247 | 39,331 | 42,453 | ||||||||||||||
| Total Assets | $ | 3,599,055 | $ | 3,502,118 | $ | 3,485,569 | $ | 3,434,382 | $ | 3,390,752 | |||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest-bearing | $ | 518,286 | $ | 506,119 | $ | 520,348 | $ | 527,327 | $ | 500,742 | |||||||||
| Interest-bearing | |||||||||||||||||||
| NOW accounts | 952,573 | 898,902 | 910,723 | 876,151 | 920,099 | ||||||||||||||
| Savings | 803,763 | 771,379 | 753,289 | 729,472 | 713,391 | ||||||||||||||
| Time | 687,870 | 693,008 | 625,302 | 597,785 | 617,679 | ||||||||||||||
| Total deposits | 2,962,492 | 2,869,408 | 2,809,662 | 2,730,735 | 2,751,911 | ||||||||||||||
| Federal funds purchased and securities | |||||||||||||||||||
| sold under agreements to repurchase | 15,168 | 14,771 | 14,762 | 37,718 | 22,718 | ||||||||||||||
| Federal Home Loan Bank (FHLB) advances | 167,903 | 168,447 | 218,987 | 227,377 | 187,913 | ||||||||||||||
| Subordinated notes, net of unamortized issuance costs | 35,000 | 34,991 | 34,962 | 34,933 | 34,904 | ||||||||||||||
| Dividend payable | 3,399 | 3,130 | 3,128 | 3,125 | 3,091 | ||||||||||||||
| Accrued expenses and other liabilities | 28,166 | 26,655 | 28,120 | 29,632 | 28,435 | ||||||||||||||
| Total liabilities | 3,212,128 | 3,117,402 | 3,109,621 | 3,063,520 | 3,028,972 | ||||||||||||||
| Commitments and Contingencies | |||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||
| Common stock – No par value; authorized 40,000,000 shares; | |||||||||||||||||||
| issued 14,564,425 shares; outstanding 13,762,268 shares 9/30/26 | |||||||||||||||||||
| and 13,748,074 shares 12/31/25 | 134,761 | 135,510 | 135,270 | 135,531 | 135,170 | ||||||||||||||
| Treasury stock – 802,157 shares 9/30/26 and 816,351 shares 12/31/25 | (11,651 | ) | (10,293 | ) | (10,403 | ) | (10,636 | ) | (10,584 | ) | |||||||||
| Retained earnings | 282,446 | 273,455 | 264,607 | 257,855 | 251,181 | ||||||||||||||
| Accumulated other comprehensive loss | (18,629 | ) | (13,956 | ) | (13,526 | ) | (11,888 | ) | (13,987 | ) | |||||||||
| Total stockholders’ equity | 386,927 | 384,716 | 375,948 | 370,862 | 361,780 | ||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 3,599,055 | $ | 3,502,118 | $ | 3,485,569 | $ | 3,434,382 | $ | 3,390,752 | |||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
| SELECT FINANCIAL DATA | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| Selected financial data | September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
September 30, 2026 |
September 30, 2025 |
|||||||||||||||||||||
| Return on average assets | 1.29 | % | 1.34 | % | 1.14 | % | 1.14 | % | 1.05 | % | 1.25 | % | 0.94 | % | ||||||||||||||
| Return on average equity | 11.76 | % | 12.37 | % | 10.31 | % | 10.55 | % | 9.83 | % | 11.45 | % | 8.99 | % | ||||||||||||||
| Yield on earning assets | 5.61 | % | 5.48 | % | 5.38 | % | 5.55 | % | 5.62 | % | 5.50 | % | 5.42 | % | ||||||||||||||
| Cost of interest-bearing liabilities | 2.59 | % | 2.56 | % | 2.54 | % | 2.69 | % | 2.83 | % | 2.56 | % | 2.84 | % | ||||||||||||||
| Net interest spread | 3.02 | % | 2.92 | % | 2.84 | % | 2.86 | % | 2.79 | % | 2.94 | % | 2.58 | % | ||||||||||||||
| Net interest margin | 3.57 | % | 3.48 | % | 3.42 | % | 3.46 | % | 3.40 | % | 3.50 | % | 3.22 | % | ||||||||||||||
| Efficiency ratio | 58.09 | % | 56.08 | % | 60.08 | % | 58.38 | % | 63.11 | % | 58.15 | % | 64.87 | % | ||||||||||||||
| Dividend payout ratio | 29.45 | % | 26.53 | % | 32.62 | % | 31.90 | % | 34.90 | % | 29.34 | % | 38.64 | % | ||||||||||||||
| Tangible book value per share | $ | 21.62 | $ | 21.41 | $ | 20.76 | $ | 20.40 | $ | 19.71 | ||||||||||||||||||
| Tier 1 leverage ratio | 9.14 | % | 8.99 | % | 9.02 | % | 8.81 | % | 8.74 | % | ||||||||||||||||||
| Average shares outstanding | 13,779,936 | 13,773,387 | 13,754,684 | 13,749,420 | 13,733,858 | 13,769,428 | 13,720,168 | |||||||||||||||||||||
| Loans | September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
|||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
| Commercial real estate | $ | 1,321,021 | $ | 1,308,600 | $ | 1,315,549 | $ | 1,355,571 | $ | 1,355,166 | ||||||||||||||||||
| Agricultural real estate | 210,321 | 208,223 | 215,846 | 217,034 | 222,145 | |||||||||||||||||||||||
| Consumer real estate | 548,913 | 533,438 | 534,987 | 526,439 | 522,416 | |||||||||||||||||||||||
| Commercial and industrial | 343,720 | 337,487 | 309,046 | 314,405 | 296,084 | |||||||||||||||||||||||
| Agricultural | 245,639 | 244,611 | 228,730 | 218,050 | 179,361 | |||||||||||||||||||||||
| Consumer | 47,251 | 50,953 | 55,576 | 58,838 | 60,469 | |||||||||||||||||||||||
| Other | 22,089 | 22,574 | 22,564 | 23,133 | 24,086 | |||||||||||||||||||||||
| Less: Net deferred loan fees, costs and other (1) | (1,635 | ) | (1,419 | ) | (1,436 | ) | (1,511 | ) | (1,452 | ) | ||||||||||||||||||
| Total loans, net | $ | 2,737,319 | $ | 2,704,467 | $ | 2,680,862 | $ | 2,711,959 | $ | 2,658,275 | ||||||||||||||||||
| Asset quality data | September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
|||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 6,219 | $ | 7,383 | $ | 11,070 | $ | 11,256 | $ | 5,155 | ||||||||||||||||||
| 90 day past due and accruing | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||||
| Nonperforming loans | $ | 6,219 | $ | 7,383 | $ | 11,070 | $ | 11,256 | $ | 5,155 | ||||||||||||||||||
| Other real estate owned | $ | – | $ | – | $ | 319 | $ | – | $ | – | ||||||||||||||||||
| Nonperforming assets | $ | 6,219 | $ | 7,383 | $ | 11,389 | $ | 11,256 | $ | 5,155 | ||||||||||||||||||
| Allowance for credit losses – loans | $ | 27,802 | $ | 27,941 | $ | 27,830 | $ | 27,688 | $ | 27,475 | ||||||||||||||||||
| Allowance for credit losses – off balance sheet credit exposures | 1,668 | 1,189 | 1,041 | 1,035 | 1,037 | |||||||||||||||||||||||
| Total allowance for credit losses | $ | 29,470 | $ | 29,130 | $ | 28,871 | $ | 28,723 | $ | 28,512 | ||||||||||||||||||
| Total allowance for credit losses/total loans | 1.08 | % | 1.08 | % | 1.08 | % | 1.06 | % | 1.07 | % | ||||||||||||||||||
| Net charge-offs: | ||||||||||||||||||||||||||||
| Quarter-to-date | $ | 35 | $ | 62 | $ | 160 | $ | 354 | $ | 59 | ||||||||||||||||||
| Year-to-date | $ | 257 | $ | 222 | $ | 160 | $ | 734 | $ | 380 | ||||||||||||||||||
| Net charge-offs to average loans | ||||||||||||||||||||||||||||
| Quarter-to-date | 0.00 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.00 | % | ||||||||||||||||||
| Year-to-date | 0.01 | % | 0.01 | % | 0.01 | % | 0.03 | % | 0.01 | % | ||||||||||||||||||
| Nonperforming loans/total loans | 0.23 | % | 0.27 | % | 0.42 | % | 0.42 | % | 0.19 | % | ||||||||||||||||||
| Allowance for credit losses/nonperforming loans | 447.05 | % | 378.45 | % | 251.40 | % | 245.98 | % | 532.98 | % | ||||||||||||||||||
| NPA coverage ratio | 447.05 | % | 378.45 | % | 244.36 | % | 245.98 | % | 532.98 | % | ||||||||||||||||||
| (1) Excludes carrying value adjustments of ($159) thousand as of September 30, 2026, $546 thousand as of June 30, 2026, $1.1 million as of March 31, 2026, $1.7 million as of December 31, 2025 and $1.9 million as of September 30, 2025 related to interest rate swaps associated with fixed rate loans. | ||||||||||||||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
| AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES | |||||||||||||||||
| (in thousands of dollars, except percentages) | |||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||
| Interest Earning Assets: | Average Balance |
Interest/ Dividends |
Annualized Yield/Rate |
Average Balance |
Interest/ Dividends |
Annualized Yield/Rate |
|||||||||||
| Loans | $ | 2,726,585 | $ | 42,061 | 6.18 | % | $ | 2,649,409 | $ | 41,013 | 6.19 | % | |||||
| Taxable investment securities | 473,448 | 3,545 | 3.00 | % | 445,088 | 2,827 | 2.54 | % | |||||||||
| Tax-exempt investment securities | 12,202 | 65 | 2.70 | % | 16,066 | 72 | 2.27 | % | |||||||||
| Fed funds sold & other | 145,409 | 1,321 | 3.63 | % | 56,131 | 572 | 4.08 | % | |||||||||
| Total Interest Earning Assets | 3,357,644 | $ | 46,992 | 5.61 | % | 3,166,694 | $ | 44,484 | 5.62 | % | |||||||
| Nonearning Assets | 191,469 | 182,320 | |||||||||||||||
| Total Assets | $ | 3,549,113 | $ | 3,349,014 | |||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||
| NOW accounts and savings deposits | $ | 1,730,869 | $ | 9,749 | 2.25 | % | $ | 1,620,026 | $ | 9,966 | 2.46 | % | |||||
| Time deposits | 684,990 | 5,009 | 2.93 | % | 609,844 | 5,094 | 3.34 | % | |||||||||
| Other borrowed money | 168,106 | 1,694 | 4.03 | % | 188,123 | 1,966 | 4.18 | % | |||||||||
| Fed funds purchased & securities | |||||||||||||||||
| sold under agreement to repurchase | 14,835 | 120 | 3.24 | % | 27,274 | 273 | 4.00 | % | |||||||||
| Subordinated notes | 34,997 | 480 | 5.49 | % | 34,885 | 284 | 3.26 | % | |||||||||
| Total Interest-Bearing Liabilities | $ | 2,633,797 | $ | 17,052 | 2.59 | % | $ | 2,480,152 | $ | 17,583 | 2.83 | % | |||||
| Noninterest-Bearing Liabilities | 526,148 | 511,468 | |||||||||||||||
| Stockholders’ Equity | $ | 389,168 | $ | 357,394 | |||||||||||||
| Net Interest Income and Interest Rate Spread | $ | 29,940 | 3.02 | % | $ | 26,901 | 2.79 | % | |||||||||
| Net Interest Margin | 3.57 | % | 3.40 | % | |||||||||||||
| Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts | |||||||||||||||||
| For the Nine Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||
| Interest Earning Assets: | Average Balance |
Interest/ Dividends |
Annualized Yield/Rate |
Average Balance |
Interest/ Dividends |
Annualized Yield/Rate |
|||||||||||
| Loans | $ | 2,705,821 | $ | 122,727 | 6.06 | % | $ | 2,615,332 | $ | 117,615 | 6.00 | % | |||||
| Taxable investment securities | 456,789 | 9,606 | 2.80 | % | 454,288 | 8,403 | 2.47 | % | |||||||||
| Tax-exempt investment securities | 12,729 | 201 | 2.67 | % | 17,025 | 224 | 2.22 | % | |||||||||
| Fed funds sold & other | 127,828 | 3,403 | 3.55 | % | 87,106 | 2,736 | 4.19 | % | |||||||||
| Total Interest Earning Assets | 3,303,167 | $ | 135,937 | 5.50 | % | 3,173,751 | $ | 128,978 | 5.42 | % | |||||||
| Nonearning Assets | 192,543 | 174,982 | |||||||||||||||
| Total Assets | $ | 3,495,710 | $ | 3,348,733 | |||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||
| NOW accounts and savings deposits | $ | 1,688,457 | $ | 27,678 | 2.19 | % | $ | 1,557,564 | $ | 28,009 | 2.40 | % | |||||
| Time deposits | 651,283 | 14,761 | 3.02 | % | 621,126 | 15,852 | 3.40 | % | |||||||||
| Other borrowed money | 190,338 | 5,764 | 4.04 | % | 220,820 | 6,927 | 4.18 | % | |||||||||
| Fed funds purchased & securities | |||||||||||||||||
| sold under agreement to repurchase | 15,646 | 383 | 3.26 | % | 27,352 | 816 | 3.98 | % | |||||||||
| Subordinated notes | 34,971 | 1,049 | 4.00 | % | 34,856 | 853 | 3.26 | % | |||||||||
| Total Interest-Bearing Liabilities | $ | 2,580,695 | $ | 49,635 | 2.56 | % | $ | 2,461,718 | $ | 52,457 | 2.84 | % | |||||
| Noninterest-Bearing Liabilities | 532,079 | 538,665 | |||||||||||||||
| Stockholders’ Equity | $ | 382,936 | $ | 348,350 | |||||||||||||
| Net Interest Income and Interest Rate Spread | $ | 86,302 | 2.94 | % | $ | 76,521 | 2.58 | % | |||||||||
| Net Interest Margin | 3.50 | % | 3.22 | % | |||||||||||||
| Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts | |||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES | |||||||||||||||||||||||||||||
| (in thousands of dollars, except percentages) | |||||||||||||||||||||||||||||
| For the Three Months Ended September 30, 2026 | For the Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||
| $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||
| Loans | $ | 42,061 | 6.18 | % | $ | 42,054 | 6.18 | % | $ | 7 | 0.00 | % | $ | 41,013 | 6.19 | % | $ | 40,359 | 6.09 | % | $ | 654 | 0.10 | % | |||||
| Taxable investment securities | 3,545 | 3.00 | % | 3,545 | 3.00 | % | – | 0.00 | % | 2,827 | 2.54 | % | 2,827 | 2.54 | % | – | 0.00 | % | |||||||||||
| Tax-exempt investment securities | 65 | 2.70 | % | 65 | 2.70 | % | – | 0.00 | % | 72 | 2.27 | % | 72 | 2.27 | % | – | 0.00 | % | |||||||||||
| Fed funds sold & other | 1,321 | 3.63 | % | 1,321 | 3.63 | % | – | 0.00 | % | 572 | 4.08 | % | 572 | 4.08 | % | – | 0.00 | % | |||||||||||
| Total Interest Earning Assets | 46,992 | 5.61 | % | 46,985 | 5.60 | % | 7 | 0.01 | % | 44,484 | 5.62 | % | 43,830 | 5.54 | % | 654 | 0.08 | % | |||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||
| NOW accounts and savings deposits | $ | 9,749 | 2.25 | % | $ | 9,749 | 2.25 | % | $ | – | 0.00 | % | $ | 9,966 | 2.46 | % | $ | 9,966 | 2.46 | % | $ | – | 0.00 | % | |||||
| Time deposits | 5,009 | 2.93 | % | 5,009 | 2.93 | % | – | 0.00 | % | 5,094 | 3.34 | % | 5,094 | 3.34 | % | – | 0.00 | % | |||||||||||
| Other borrowed money | 1,694 | 4.03 | % | 1,691 | 4.02 | % | 3 | 0.01 | % | 1,966 | 4.18 | % | 1,963 | 4.17 | % | 3 | 0.01 | % | |||||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||
| securities sold under agreement to | |||||||||||||||||||||||||||||
| repurchase | 120 | 3.24 | % | 120 | 3.24 | % | – | 0.00 | % | 273 | 4.00 | % | 273 | 4.00 | % | – | 0.00 | % | |||||||||||
| Subordinated notes | 480 | 5.49 | % | 480 | 5.49 | % | – | 0.00 | % | 284 | 3.26 | % | 284 | 3.26 | % | – | 0.00 | % | |||||||||||
| Total Interest-Bearing Liabilities | 17,052 | 2.59 | % | 17,049 | 2.59 | % | 3 | 0.00 | % | 17,583 | 2.83 | % | 17,580 | 2.84 | % | 3 | -0.01 | % | |||||||||||
| Interest/Dividend income/yield | 46,992 | 5.61 | % | 46,985 | 5.60 | % | 7 | 0.01 | % | 44,484 | 5.62 | % | 43,830 | 5.54 | % | 654 | 0.08 | % | |||||||||||
| Interest Expense / yield | 17,052 | 2.59 | % | 17,049 | 2.59 | % | 3 | 0.00 | % | 17,583 | 2.83 | % | 17,580 | 2.84 | % | 3 | -0.01 | % | |||||||||||
| Net Interest Spread | 29,940 | 3.02 | % | 29,936 | 3.01 | % | 4 | 0.01 | % | 26,901 | 2.79 | % | 26,250 | 2.70 | % | 651 | 0.09 | % | |||||||||||
| Net Interest Margin | 3.57 | % | 3.57 | % | 0.00 | % | 3.40 | % | 3.32 | % | 0.08 | % | |||||||||||||||||
| For the Nine Months Ended September 30, 2026 | For the Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||
| As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||
| $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||
| Loans | $ | 122,727 | 6.06 | % | $ | 122,110 | 6.03 | % | $ | 617 | 0.03 | % | $ | 117,615 | 6.00 | % | $ | 115,755 | 5.90 | % | $ | 1,860 | 0.10 | % | |||||
| Taxable investment securities | 9,606 | 2.80 | % | 9,606 | 2.80 | % | – | 0.00 | % | 8,403 | 2.47 | % | 8,403 | 2.47 | % | – | 0.00 | % | |||||||||||
| Tax-exempt investment securities | 201 | 2.67 | % | 201 | 2.67 | % | – | 0.00 | % | 224 | 2.22 | % | 224 | 2.22 | % | – | 0.00 | % | |||||||||||
| Fed funds sold & other | 3,403 | 3.55 | % | 3,403 | 3.55 | % | – | 0.00 | % | 2,736 | 4.19 | % | 2,736 | 4.19 | % | – | 0.00 | % | |||||||||||
| Total Interest Earning Assets | 135,937 | 5.50 | % | 135,320 | 5.47 | % | 617 | 0.03 | % | 128,978 | 5.42 | % | 127,118 | 5.34 | % | 1,860 | 0.08 | % | |||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||
| NOW accounts and savings deposits | $ | 27,678 | 2.19 | % | $ | 27,678 | 2.19 | % | $ | – | 0.00 | % | $ | 28,009 | 2.40 | % | $ | 28,009 | 2.40 | % | $ | – | 0.00 | % | |||||
| Time deposits | 14,761 | 3.02 | % | 14,761 | 3.02 | % | – | 0.00 | % | 15,852 | 3.40 | % | 15,852 | 3.40 | % | – | 0.00 | % | |||||||||||
| Other borrowed money | 5,764 | 4.04 | % | 5,754 | 4.03 | % | 10 | 0.01 | % | 6,927 | 4.18 | % | 6,917 | 4.18 | % | 10 | 0.00 | % | |||||||||||
| Federal funds purchased and | |||||||||||||||||||||||||||||
| securities sold under agreement to | |||||||||||||||||||||||||||||
| repurchase | 383 | 3.26 | % | 383 | 3.26 | % | – | 0.00 | % | 816 | 3.98 | % | 816 | 3.98 | % | – | 0.00 | % | |||||||||||
| Subordinated notes | 1,049 | 4.00 | % | 1,049 | 4.00 | % | – | 0.00 | % | 853 | 3.26 | % | 853 | 3.26 | % | – | 0.00 | % | |||||||||||
| Total Interest-Bearing Liabilities | 49,635 | 2.56 | % | 49,625 | 2.56 | % | 10 | 0.00 | % | 52,457 | 2.84 | % | 52,447 | 2.84 | % | 10 | 0.00 | % | |||||||||||
| Interest/Dividend income/yield | 135,937 | 5.50 | % | 135,320 | 5.47 | % | 617 | 0.03 | % | 128,978 | 5.42 | % | 127,118 | 5.34 | % | 1,860 | 0.08 | % | |||||||||||
| Interest Expense / yield | 49,635 | 2.56 | % | 49,625 | 2.56 | % | 10 | 0.00 | % | 52,457 | 2.84 | % | 52,447 | 2.84 | % | 10 | 0.00 | % | |||||||||||
| Net Interest Spread | 86,302 | 2.94 | % | 85,695 | 2.91 | % | 607 | 0.03 | % | 76,521 | 2.58 | % | 74,671 | 2.50 | % | 1,850 | 0.08 | % | |||||||||||
| Net Interest Margin | 3.50 | % | 3.47 | % | 0.03 | % | 3.22 | % | 3.14 | % | 0.08 | % | |||||||||||||||||
| FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF TANGIBLE COMMON EQUITY | |||||||||||||||
| (in thousands of dollars) | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Reconciliation of Common Stockholders’ Equity to Tangible Common Equity | September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
||||||||||
| Stockholders’ Equity | $ | 386,927 | $ | 384,716 | $ | 375,948 | $ | 370,862 | $ | 361,780 | |||||
| Less Goodwill and Other Intangibles | 89,433 | 89,738 | 90,043 | 90,347 | 90,792 | ||||||||||
| Tangible Common Equity | $ | 297,494 | $ | 294,978 | $ | 285,905 | $ | 280,515 | $ | 270,988 | |||||
| Average Stockholders’ Equity | $ | 389,168 | $ | 382,584 | $ | 376,923 | $ | 368,235 | $ | 357,394 | |||||
| Less average Goodwill and Other Intangibles | 89,633 | 89,933 | 90,234 | 90,629 | 91,076 | ||||||||||
| Average Tangible Common Equity | $ | 299,535 | $ | 292,651 | $ | 286,689 | $ | 277,606 | $ | 266,318 | |||||
| Company Contact: | Investor and Media Contact: |
| Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank |
Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com |
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